Is Input services available for units under SSI Exemptions

[ravichandran maraiyan]

We are one of the units registered under Excise Duty and Service tax and availing SSI exemptions for manufacturing. We are also providing services like erection, commissioning and installations and charging service tax. Shall we eligible for taking Input service credit for set-off against service tax payment?

AI Summary

SSI Units Can Use CENVAT Credit for Service Tax Under Rule 2(l), Not for Central Excise Liabilities A unit registered under Excise Duty and Service Tax, benefiting from SSI exemptions, inquired about eligibility for input service credit to offset service tax payments. A consultant confirmed that CENVAT credit is available under Rule 2(l) of the CENVAT Credit Rules, 2004, but it can only be used against service tax liabilities, not Central Excise liabilities. Another respondent added that service tax payments made under reverse or partial charge mechanisms are also eligible for input service credit for service tax payments.